Why You Should Never Sell Features—Sell Identity
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Why You Should Never Sell Features—Sell Identity
No one buys a Rolex for the time.
No one buys a Ferrari for the speed limit.
No one buys Air Jordans to jump higher.
People buy who they become when they own it.
This isn't marketing theory. It's human psychology at its most fundamental level.
When someone hands over $15,000 for a Rolex, they're not buying a timepiece. They're buying the story of who they are—successful, discerning, someone who values craftsmanship and legacy.
The $15,000 isn't for the watch. It's for the identity.
And this principle isn't just for luxury brands. It works for every business, every product, every service at every price point—including yours.
Identity: The Hidden Driver of Every Purchase
Look at how people actually buy:
They'll spend $300 on Beats headphones when $100 alternatives sound identical in blind tests.
They'll choose a $5 Starbucks latte over a $1.50 gas station coffee that has the same caffeine.
They'll join CrossFit at $200/month instead of a $30/month gym with the same equipment.
In each case, the functional difference is minimal. The identity difference is massive.
The gap between price and utility is always filled by identity.
When someone buys Beats, they're buying the identity of someone with style and cultural awareness.
When someone buys Starbucks, they're buying the identity of someone who appreciates quality and deserves small luxuries.
When someone joins CrossFit, they're buying the identity of an athlete, a member of a tribe, someone committed to extreme fitness.
This matters for one simple reason: If you're selling features and your competitor is selling identity, you will lose every time—regardless of who has the better product.
The Science Behind Identity Purchases
This isn't just marketing hype. It's hardwired into our brains.
Stanford neuroscientists found that when people consider identity-aligned purchases, they activate the medial prefrontal cortex—the same brain region involved in processing information about ourselves.
In other words, when evaluating these purchases, the brain literally cannot distinguish between the product and the self.
Your customers don't separate what they buy from who they are.
This explains several phenomena that otherwise make no sense:
Why people defend their brand choices as fiercely as religious beliefs
Why feature comparison charts rarely change purchase decisions
Why customers will pay 10x more for identical functionality when identity is involved
Why logical arguments fail against identity-based preferences
Understanding this gives you an unfair advantage in any market.
Real Identity Products vs. Feature Products
Let's compare products that sell the same functional benefit but at dramatically different price points:
Timepieces:
Feature sell: Timex ($40) - Accurate time, durable, water-resistant
Identity sell: Rolex ($10,000) - Success, appreciation of craftsmanship, legacy
Coffee:
Feature sell: Folgers ($0.10/cup) - Caffeine, familiar taste
Identity sell: Blue Bottle ($3/cup) - Sophisticated palate, appreciation of artisanal methods
Clothing:
Feature sell: Generic T-shirt ($5) - Covers body, comfortable, appropriate
Identity sell: Supreme T-shirt ($150) - Cultural relevance, exclusivity, being "in the know"
In each pair, the functional benefit is nearly identical. The price difference—which can be 10x, 30x, or even 100x—is entirely attributable to identity.
The premium that people will pay for identity is nearly unlimited.
This isn't irrational. Humans are social creatures for whom identity and belonging are as essential as food and shelter. We communicate who we are through what we own, wear, drive, eat, and experience.
Your product is a statement your customer makes to themselves and others about who they are in the world.
How to Discover the Identity Your Customer Wants
Most businesses make a critical mistake: they ask customers what features they want.
But customers rarely know the features they need. What they do know—with absolute clarity—is who they want to become.
Instead of asking "What features would you like?" the right question is:
"Who do you want to be, and how can my product help you become that person?"
Here's how to find answers:
Study aspirational language
Pay attention when customers use phrases like:
"I want to be the kind of person who..."
"I wish I could..."
"I admire people who..."
"I've always wanted to..."
These statements reveal desired identities, not feature preferences.
Map identity gaps
For your ideal customer, identify:
Current identity (how they see themselves now)
Desired identity (who they want to become)
Obstacles between these two states
Your product succeeds when it bridges this gap.
Find identity symbols
What do people in your market display, mention, or share to signal their identity?
In fitness, it might be athletic achievements or body composition. In technology, it might be early adoption or technical knowledge. In parenting, it might be children's achievements or family harmony.
These symbols reveal the identities people are striving to embody or project.
The Four Types of Identity Value
Not all identity value is created equal. Your offering likely delivers one or more of these identity types:
Aspirational Identity - "This makes me who I want to become"
Tesla doesn't just sell electric cars. It sells environmental consciousness combined with cutting-edge innovation—an aspirational identity for many.
Tribal Identity - "This makes me part of a group I want to belong to"
Harley-Davidson doesn't sell motorcycles. It sells membership in a brotherhood of freedom-seeking rebels.
Status Identity - "This signals my achievements or position to others"
Louis Vuitton doesn't sell handbags. It sells visible symbols of success and discernment.
Self-Image Identity - "This aligns with how I see myself"
TOMS doesn't sell shoes. It sells the feeling of being socially conscious and charitable.
The strongest offerings combine multiple identity types.
Apple hits aspirational (innovative), tribal (creative professionals), status (visible premium), and self-image (discerning taste) simultaneously—which explains their pricing power and customer loyalty.
Transforming Your Business to Sell Identity
Here's how to shift from selling features to selling identity:
Redefine what business you're in
Peloton could have defined itself as selling exercise bikes (feature).
Instead, they defined themselves as selling the identity of an in-shape person who values efficiency and has access to world-class instruction.
Ask: What identity business are you really in?
Align every touchpoint with that identity
Once you know the identity you're selling, every aspect of your business should reinforce it:
Product design
Packaging
Website aesthetic
Customer service style
Social media voice
Community building
Price point
Lululemon doesn't just sell yoga pants with certain features. Their store design, employee training, community events, and even shopping bags all reinforce the identity of a wellness-focused, mindful, high-achieving person.
Price to identity, not to cost
The fatal mistake most businesses make is pricing based on:
Cost plus margin
Competitor benchmarks
"What the market will bear"
None of these capture the true value of identity transformation.
The right price is what the desired identity is worth to your customer, not what your product costs to make.
When you price to identity value, price sensitivity largely disappears. People will find a way to afford the identity they desire.
The Power of Identity in the Real World
This isn't theoretical. Identity-based selling creates market-dominating businesses:
Yeti transformed the cooler market by turning a commodity product (insulated box) into an identity product (outdoor enthusiast with uncompromising standards). The result? People happily paying $300 for coolers when $50 alternatives have nearly identical functionality.
Liquid Death built a $700 million water company by turning the most commodity product imaginable (water) into an identity statement (edgy, environmentally conscious rebel). They sell canned water at beer prices because they understood the identity game.
Peloton created a fitness revolution not by having the best exercise bike, but by selling the identity of someone who values efficient, world-class training. Their customers don't pay $2,500 for a bike—they pay for who they become when they own it.
In each case, the company focused relentlessly on identity transformation rather than feature sets.
The Common Mistakes to Avoid
If identity selling is so powerful, why don't more businesses use it? Three common mistakes:
Feature orientation
Most founders are product people. They love features and specifications. They believe the best product will win.
But customers don't buy best. They buy identity.
Benefit confusion
Many businesses focus on practical benefits (save time, save money, improve performance).
These matter, but they're secondary to identity benefits (become the person you want to be).
Narrow identity focus
Some businesses target too narrow an identity (just status, just aspiration, just tribal).
The strongest offerings combine multiple identity types for maximum resonance.
Your Identity Selling Blueprint
Ready to transform your business? Here's your blueprint:
Define the identity transformation
What identity does your ideal customer currently have, and what identity do they desire? How does your offering bridge that gap?
Create identity proof
What visible evidence will show your customer (and others) that they've achieved their desired identity?
Establish identity shortcuts
How does your offering make achieving the desired identity easier, faster, or more certain than alternatives?
Build identity reinforcement
How will you continually remind customers of their identity transformation through the customer journey?
Price to identity value
What is the desired identity truly worth to your customer, regardless of your production costs?
When you answer these questions, you stop selling features and start selling identity.
And when you sell identity, price objections largely disappear, word-of-mouth accelerates, and customer loyalty strengthens.
The Ultimate Identity Test
Not sure if you're truly selling identity or still trapped in feature-land? Try this test:
Complete the sentence: "Our customers don't just buy [your product/service], they buy [identity]."
If you can't complete this sentence convincingly, you're still selling features.
For example:
"Our customers don't just buy coffee, they buy the identity of someone with sophisticated taste who appreciates the finer things."
"Our customers don't just buy online courses, they buy the identity of a self-directed learner committed to constant growth."
"Our customers don't just buy project management software, they buy the identity of an organized leader who drives results through systems."
When you can articulate the identity transformation clearly, your entire business strategy becomes obvious.
Because at the end of the day, people don't buy products. People don't buy services. People don't buy features.
People buy better versions of themselves.
And the businesses that understand this rule the market.
Thank you for reading.
– Scott